Inghams profit falls on lower poultry volumes, shares hit 2-year low (updated)

Woolworths

22/08/2025 05:35

Updates with details on results throughout, share moves in paragraph 3 and analyst comment in paragraph 5

Aug 22 (Reuters) - Australian poultry producer Inghams Group ING.AX reported an 11.5% fall in full-year profit on Friday, hurt by lower core poultry volumes, and forecast operating earnings below analyst estimates, sending its shares to a two-year low.

The firm logged A$89.8 million ($57.68 million) in profit attributable for the year ended June 30, down from A$101.5 million reported for the previous year.

Shares of Inghams sank as much as 21.7% to A$2.78, their weakest level since mid-August 2023, making them the top decliners on the benchmark S&P/ASX 200 index .AXJO, which slipped 0.3% from a record close on Thursday.

Annual revenue declined to A$3.15 billion from A$3.26 billion as group core poultry volumes fell 1.4%. In Australia, its largest market, Inghams shifted to a lower-margin mix to clear excess inventory after changes to a supply agreement with retailer Woolworths WOW.AX.

"It appears the worst-case fears of Inghams having to replace the WOW volumes have played out," UBS said in a note, adding that investors would focus on how the company reduces excess stocks.

Inghams sees fiscal 2026 operating earnings before the lease accounting standard at A$215 million–A$230 million, below a Visible Alpha consensus estimate of A$249 million, and expects slightly higher core poultry volumes.

The firm declared a final dividend of 8 Australian cents apiece, same as last year.

($1 = 1.5569 Australian dollars)

 (Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

 ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))